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Economic and Social Impact of the Rosia Montana Project

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Economic and Social Impact of the Rosia Montana Project The University ‘December 1, 1918’ of Alba Iulia ECONOMIC AND SOCIAL IMPACT OF THE ROSIA MONTANA PROJECT The University ‘December 1, 1918’ of Alba Iulia is a public institution of superior education which has assumed from its early beginnings the role of an institution of superior education and research, strongly involved in the community life. Taking into consideration this perspective, a group of teachers from of the University have finalized a study concerning the economic and social impact of the Roşia Montană mining project on the area. SUMMARY 1. Introduction.......................................................................................................................11 1.1. Background..........................................................................................................11 1.2. Scope of the study................................................................................................11 1.3. Structure of the study...........................................................................................11 1.4. Work methodology...............................................................................................12 1.5. Work team.............................................................................................................12 2. DESCRIPTION OF RMGC PROJECT…....................................................................14 2.1. RMGC project promoters.....................................................................................14 2.2. Project location and description….......................................................................14 2.3. Project development stages..................................................................................16 3. DESCRIPTION OF THE IMPACT AREA...................................................................19 3.1. Delimitation of the impact area.............................................................................19 3.2. Geographical and administrative characteristics ................................................ ..20 3.3. Historical and cultural aspects............................................................................ ..33 3.4. Demographic and social references.................................................................... ..42 3.5. Economic potential of the impact area ............................................................... ..55 3.6. SWOT Analysis.................................................................................................. ..72 4. THE PROJECT’S ECONOMIC IMPACT ON THE AREA FROM THE PERSPECTIVE OF SUSTAINABLE GROWTH ........................................................... 77 4.1. The acquisition of properties and land assignment contracts ............................. 77 4.2. The building of the relocation infrastructure ...................................................... 81 4.3. The construction of the mining infrastructure and its use after the Project’s end .............................................................................................................. 82 4.4. The general development of the local infrastructure .......................................... 84 4.5. Jobs created and their social implications .......................................................... 86 4.6. Protection of the historic and cultural heritagel ................................................. 89 4.7. Impact of the R.M.G.C. project budgets of local authorities ............................. 97 4.8. Impact of the RMGC project on the state consolidated budget .......................... 103 4.9. Development of business in the area and the collaboration with local economic units ................................................................................................................................... 110 4.10. The Micro Crediting Initiative – Local Development Strategy Component .... 115 4.11. Development of education and of professional training activities ................... 117 4.12. Creating a public-private partnership ............................................................... 119 4.13. Perception of the project and expectations of the locals .................................. 122 5. CONCLUSIONS ............................................................................................................. 127 2 EXTENDED SUMMARY The University ‘December 1, 1918’ of Alba Iulia is a public institution of higher education which has assumed from its early beginnings the role of an institution of higher education and research, strongly involved in community life. Taking into consideration this perspective, a group of teachers from of the University have finalized a study concerning the economic and social impact of the mining project Roşia Montană on the area. The need for this study was suggested by the implications of this project as far as the economy and social life of the area are concerned, as well as the controversies that the realization of this project brought up. Although its authors are convinced of the importance of the environmental impact, this was not the object of the research, because there are other numerous studies that analyses the respective aspect and these fundament favorable or unfavorable conclusions of the project from this perspective. The purpose of the study id not to provide a final verdict, but offer to those who are interested in the project information concerning the economic and social situation of the area and the impact that the accomplishment of the mining project submitted by RMGC has on the area. The dimension of the cultural impact is approached in a tangential manner because of its significance in the area and the participation of the University in the accomplishment of archeological research from the impact area of the project. The study is structured in five chapters the synthesis of which will be presented hereinafter: CHAPTER 1 is a general introduction, in which the general framework of the study is presented, its scope, structure, methodology and the team. It is highlighted that the majority of the necessary data was collected from authorized, independent sources so as to obtain objective and impartial conclusions as far as the impact of the project is concerned. The team was formed of specialists with complex competences in the economic and social areas. CHAPTER 2 presents a synthesis of the gold exploitation project submitted by the Trading Company Roşia Montană Gold Corporation S.A. (RMGC), with the following distribution of the joint stock: 80 % Gabriel Resources Ltd (Canada), 19,31 % Autonomous Copper Regia Deva (subsequently Mininvest), 0,23 % three minority shareholders (Cartel Bau, Foricon S.A. and Comat S.A.) The project submitted by RMGC has as main objective the development of a gold and silver mine and is locate din the vicinity of the village Roşia Montană, in Alba County, 80 km of Alba Iulia. The mining activities will be carried out in four open pits (Cetate, Cârnic, Orlea and Jig), the exploitable reserve being estimated at 215 Mt ore with a 1,46 g/tAu content and 6,9 t/Ag recovered metals, the overall production being estimated at 247,7 t (7,9 mill. ounces) Au and 898,5t (28,9 mill. ounces) Ag. The expenses of the project are estimated at 3703 million dollars of which 2523 million $ will be spent in Romania. The direct benefits of the Romanian state form taxes and dividends are of 985 mill. $, and the estimated profit of the company is of 1,4 billion dollars. 3 The mining project is anticipated to be carried out in four distinct phases: 1. pre-construction period; 2. construction period; 3. exploitation period; 4. project closing period; This phasing has generated the necessity of tackling the economic and social impact dynamic according to the respective phases. CHAPTER 3 describes the impact area. This is limited by the perimeter belonging to the following localities: Roşia Montană, Abrud, Bucium, Ciuruleasa, Câmpeni, Mogoş, Lupşa, Bistra. Many existent studies on the project focus their attention only on the village Roşia Montană when they make an evaluation of the impact of the project. But we consider that the area of research must be extended over the villages in the vicinity given the tight economic, social and cultural connections among them, established over the time and the impact of the project that will be felt directly as well as indirectly. From among the mentioned villages a strong impact next to Roşia Montană will be felt in Abrud and Bucium because of the characteristics of implementation of the project. From a geographical point of view the direct impact area is in the middle hydrographic basin of the river Arieş, at the borderline between two important geomorphologic units of the Apuseni Mountains, respectively the Massif Muntele Mare in the Northern half of the area and the Metaliferi Mountains, in the Southern half. From on administrative perspective, the respective perimeter comprises two towns and six townships, each of them administering several villages. Because of the existent wealth and especially because of the existence of the gold bedding, the impact area has specific characteristics in comparison with the neighboring communities, being the cradle of a civilization with a bi-millenarian existence, a fact proven by archeological vestiges existent in the area. The village Roşia Montană is known in the historical-epigraphic literature by means the discovery of 25 wooden waxed plates depicting aspects of the socio- economical life in the Roman era. Other sites of
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